Delta’s cargo drops, but revenue profits soar
25 / 04 / 2014
DELTA AIR LINES posted record profits of US$ 8.9bn, despite its cargo revenue falling by nine per cent ($21m) driven by lower freight volumes and lower yields.
The impressive results belies the fact that the US carrier was forced to cancel more than 17,000 flights due to severe weather in January and February, double the number of flights cancelled for weather in 2013. The cancellations resulted in $90m of lost revenue and $55m lower pre-tax income, a statement reveals.
Commenting on the results, Richard Anderson, Delta's chief executive, reveals: “The March quarter's record results in the face of unprecedented weather show the strength and resilience of Delta.
“By delivering the industry's best customer service, operational reliability and financial performance, Delta people continue to show that they are the very best in the business.
“Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14 to 16 per cent operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns."